SCANSOURCE, INC. (SCSC) FY2025 10-K Annual Report
Filed: Aug 21, 2025
Consumer Discretionary
Wholesale-Computers & Peripheral Equipment & SoftwareSEC EDGAR SCANSOURCE, INC. (SCSC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Aug 21, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
SCANSOURCE, INC. FY2025 10-K Analysis
Business Overview
- • Core business: technology distribution connecting hardware, SaaS, connectivity, and cloud solutions to ~25,000 channel sales partners in US, Canada, Brazil, revenue $3.04B FY2025
- • New operating segment structure effective July 1, 2024: Specialty Technology Solutions and Intelisys & Advisory realigned to reflect sales models including agency sales for next-gen tech
- • Strategic emphasis on integrating complex, converging technology solutions and expanding recurring revenue services across both segments
- • Employee count approximately 2,100 as of June 30, 2025, with enhanced workforce development programs including ScanSource Leadership Institute and global intranet launched 2023
- • Cisco and Zebra products each accounted for over 10% of net sales in FY2025, with multi-year, renewable non-exclusive supplier agreements
Management Discussion & Analysis
- • Revenue $3.04B, down 6.7% YoY ($218.9M decrease), Specialty segment down 7.1% to $2.94B, Intelisys up 6.3% to $98.1M
- • Gross margin 13.4% vs 12.2%, Specialty margin 10.6% vs 9.7%, Intelisys margin 99.1% vs 99.5%
- • Best performing segment: Intelisys & Advisory operating margin 27.7% vs 33.2%, operating income down $3.4M to $27.2M; Worst: Specialty operating income down $0.6M to $66.0M, margin 2.2% vs 2.1%
- • Operating income $85.2M, flat 2.8% margin; SG&A up $9.5M to $286.9M (9.4% of sales); Restructuring savings total $20.5M annualized; Interest expense down $5M to $8.0M; Net income $71.5M (2.4% margin)
- • Cash flow/capex: Not explicitly disclosed; corporate expenses include $5.4M restructuring, $1.6M legal settlement, $0.9M acquisition costs
- • Outlook/guidance: Fiscal 2026 tax rate expected 27.2%-28.2%; macroeconomic risks from tariffs, inflation, foreign exchange; ongoing monitoring and mitigation efforts noted; acquisitions of Resourcive and Advantix completed in 2024
Risk Factors
- • Legal risk: routine litigation including commercial, IP, employment disputes; uninsured adverse outcomes could impact financial results
- • Geopolitical risk: supply chain exposure to political/social instability in Asia affecting product exports to U.S. channel sales partners
- • Operational risk: ransomware incident in 2023 disrupted IT systems critical for ordering and sales processes
- • Competitive risk: supplier consolidation (e.g., Cisco, Zebra) reduces distribution options, raising risk of supply shortages and margin pressure
- • Financial risk: multi-currency senior secured credit facility with JPMorgan includes leverage and interest coverage covenants, risk of restricted capital access
SCANSOURCE, INC. FY2025 Key Financial MetricsXBRL
Revenue
$3.0B
▼ -6.7% YoY
Net Income
$72M
▼ -7.2% YoY
Gross Margin
13.4%
▲ +120bp YoY
Operating Margin
2.8%
▲ +3bp YoY
Net Margin
2.4%
▼ -1bp YoY
ROE
7.9%
▼ -44bp YoY
Total Assets
$1.8B
▲ +0.4% YoY
EPS (Diluted)
$3.00
▼ -2.0% YoY
Operating Cash Flow
$112M
▼ -69.8% YoY
Source: XBRL data from SCANSOURCE, INC. FY2025 10-K filing on SEC EDGAR. All figures in USD.
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